Jefferies downgraded SEDG to "underperform" from "hold"
SolarEdge Technologies Inc (NASDAQ:SEDG) stock sports a 4.6% premarket loss, after a Jefferies downgrade to "underperform" from "hold," and price-target cut from $27 to $17. The analyst in question noted muted demand, high inventory levels, and slower growth prospects in Europe.
The solar stock is down 76.6% in 2024 and 84.4% over the last 12 months. Despite yesterday seeing its best day since Aug. 23 with a 11.4% gain, the security is still down 13.1% this quarter. Set to open around $20.95, SEDG is also not too far removed from its Sept. 10, roughly seven-year low of $17.12.
Coming into today, the majority of analysts were already bearish, with 29 of 33 rating SEDG a tepid "hold" or worse. It's also worth noting that short interest accounts for 30.5% of the stock's total available float.
The options pits are much more bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 3.98 sits higher than all annual readings. This means calls have been bought at a much higher clip, and an unwinding of optimism could pressure the shares..
Options traders are in luck, as the stock's Schaeffer's Volatility Scorecard (SVS) sits at 96 out of 100. This indicates SEDG has exceeded options traders' volatility expectations over the past year, which is a boon for premium buyers.